Money Matters
The currency for Mexico is the Mexican Peso. It is quite easy to understand how it works if you familiarize yourself with it before your vacation. This section will take the mystery out of eating out, shopping for souvenirs and getting around town.
Mexican Peso Bills & Coins
Peso bills come in denominations of 20, 50, 100, 200, 500 and 1,000 peso bills. The bills are different colors and different sizes to help tell them apart. Here are some photos so that you recognize them:
Peso coins have a little more flair to them than the coins we use back home. They are not only round and often two-toned, but the smaller coins can be different shapes. Here is a description of the coins, as well as their value, in order of size:
• 10 Centavos – Tiny, silver and circular
• 1 Peso – Small, but bigger than 50 Centavos, gold center and silver outer, circular.
• 100 Pesos – About the same size of a 20 peso coin. These are EXTREMELY rare and if you happen to find yourself with one, keep it as a souvenir and sell it in a few years on e-bay!
I don’t understand how Mexican Pesos work!
Now that we know what the Mexican Peso looks like, here’s how they work. In simplest terms, drop a zero from the Peso and that will give you an approximate amount of US dollars that an item costs. Here are some examples:
• T-Shirt - $150 Mexican Pesos = Approximately $15 US dollars • Dinner for Two - $500 Pesos = Approximately $50 US dollars
With Peso coins, simply add a zero and “cents”. Here are some examples:
• Gum - $1 Mexican Peso = Approximately 10¢ Cents US • Water Bottle - $8 Mexican Pesos = Approximately 80¢ Cents US With Centavo coins, drop the zero. Here are some examples: • Tamarindo Candy - $10 Centavos = Approximately 1¢ Cent (Penny) US • Pastry - $20 Centavos = Approximately 2¢ Cents US
Check the currency exchange rate before you go:
The exchange rate in Mexico will probably vary from Cambio (exchange house/booth), hotel, restaurant and bank, but this will give you an idea.
ATM Machines & Travelers Checks
Both the ATM and your bank back home will most likely charge you a transaction fee, but it can often be worth it for the convenience. In addition, you will get a daily and most likely better exchange rate than changing your Canadian or US Dollars elsewhere. Remember, you are in Mexico and will be withdrawing Pesos. So if you want to withdraw about $100 US dollars, you will have to enter $1,000 Pesos.
Mexico Vacation Central does not advise using ATMs as your only source of funds while in Mexico. There is always a possibility of difficulty. Please have a back-up. We recommend cash or travelers checks. Travelers checks are great because if you lose them or they get stolen, they can be replaced by your bank back home. Make sure you write the serial numbers down and keep them in a separate place.
With a valid passport and ID, you will be able to change them to Pesos at any bank, most Cambios (exchange house/booth) and some businesses. If you are going to use them at a restaurant or store, ask if they except them first and make sure you have the proper ID with you. Please be aware that if you change them at anything other than a bank, you may not be receiving the best rate. Confirm the rate before you exchange and make the decision as to whether or not convenience takes precedence over a better rate.
Credit Cards
In most markets and “off the beaten path” vacation destinations in Mexico, business owners are most likely not going to accept credit cards. They are however, becoming more and more accepted in hotels, restaurants and shops all over the country.
While credit cards can be extremely convenient and offer the best exchange rates, Mexico Vacation Central recommends you try to avoid the use of your credit card when possible. If you choose to use it, please follow these suggestions:
• Inform your credit card company of the dates you will be traveling and where you are vacationing. • Do not let your credit card leave your sight. Keep an eye on it on all times. Many places will take the credit card and go to another location to run the card. If this has to be done, FOLLOW THEM. • Using your credit card may not be cheaper. Lots of places charge the client credit card fees. If you pay by cash and not by credit card, they are more willing to bargain and give you a better deal because they don’t necessarily have to report it. With a credit card, they most definitely do. • Check your credit card bill very carefully when you get home so that you can report any charges to the card that you did not make. • DO NOT rely on your credit card. As with ATMs, have a back-up. Mexico Vacation Central wants you to have the most informative and worry-free vacation possible. While the crime rate in most Mexico tourist areas is very low, credit card fraud does exist, as it does anywhere else in the world. Once you are home, it can often be difficult to contest an erroneous charge. So as suggested above, keep an eye on your credit card!
Money Tips
Here are some other tips that will assist you with your money matters in Mexico:
• Mexicans also use the $ sign for the Peso. So something that reads $50 may actually be 5 dollars and not 50. If you aren’t sure, ask! You can do this by saying “Dolares o Pesos?” (pronounced “doe-LAR-aze o pay-so’s). • Tipping everyone from the bell boy to the baggers at the supermarket is normal in Mexico. The wage in Mexico is about $4 US per day so your tip means a lot. If someone goes the extra mile for you, show them you appreciate it. Also, tip in your resort. Workers rarely get tips when the package is “all- inclusive”, but your tip will get you excellent service and appreciation. • When in Mexico, pay in Pesos. It is the local currency and will assure you the best bang for your buck. Though US Dollars are widely accepted, Mexico Vacation Central says JUST USE PESOS! • Ripped bills will not be accepted at any establishment. It is sometimes difficult to even exchange them at banks. Keep your eye out for ripped bills and don’t accept any. Point them out to the person who has handed them to you and get them to give you a bill that is not ripped. This includes American Dollars and Pesos. • Change is in short supply. It is not unheard of that a store doesn’t have any change for that can of coke you just bought with $10.00 US. Keep your change around and try to use the smallest denominations of bills as possible.
• The rates are most likely better at your hotel, cambio, or a bank than at the airport. • Do not bring coins from Canada, the US or any other country. They are considered worthless. If you want to bring a few loonies or silver dollars to give as a souvenir that’s great, but they do not have any value in Mexico. • Don’t change or carry around more money than necessary. • Check exchanges rates when you get to Mexico and change your money at the place that gives you the best rates. Make sure they don’t charge you extra fees to do this. • Count your money at the bank window, cambio, or exchange office once you’ve had it exchanged into Pesos. Errors can occur! • Ask for additional small bills when you exchange your money. They come in handy for those tips! • Have a budget for your Mexican vacation, and stick with it. • If you are Canadian, do not change your Canadian dollars into US Dollars before you travel to Mexico, and then again once you arrive in Mexico. You will lose money on the double exchange. Change your funds from Canadian dollars directly to Mexican Pesos.
You are now officially an expert on all money matters in Mexico! Don’t forget to visit our Vacation Tips page for more travel information.
Have a great Mexican Vacation!!!
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ATMs are an extremely convenient way to get Mexican Pesos.
